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US admin sees record deficits of $455 billion this year
Washington, July 16: The Bush administration projected today that the federal deficit will climb to a record $455 billion this year and surge to $475 billion in 2004, underscoring the toll that recession, tax cuts and the fight against terror is taking on the government`s books.
Washington, July 16: The Bush administration projected today that the federal deficit will climb to a record $455 billion this year and surge to $475 billion in 2004, underscoring the toll that recession, tax cuts and the fight against terror is taking on the government's books.
The White House estimated that the red ink will begin to ease after that, dipping to $213 billion in 2007. The deficit will bump upward again to $226 billion in 2008, according to the figures, which were obtained by the Associated Press.
The numbers accentuate that though the White House expects the huge shortfalls to begin to decline, they remain a long-term concern - especially with the huge baby boom population ready to start retiring later this decade.
The enormous new figures, to be unveiled later in the day by the White House, were certain to throw gasoline on the political fight over the budget. They were described by two Republicans who spoke on condition of anonymity.
Even before the official figures were released, Republicans in Congress sought to place the blame on federal spending, rather than the tax cuts they voted through at President Bush's urging. House majority leader tom delay and Rep. Jim Nussle both referred to a "spending-driven deficit."
Federal reserve chairman Alan Greenspan told a house committee that he still supports tax reductions to spur a torpid economy. But in remarks that could complicate future Republican drives for new tax cuts, he said the reductions should be paid for with spending cuts or tax increases to keep the budget situation from getting worse.
Bureau Report
The numbers accentuate that though the White House expects the huge shortfalls to begin to decline, they remain a long-term concern - especially with the huge baby boom population ready to start retiring later this decade.
The enormous new figures, to be unveiled later in the day by the White House, were certain to throw gasoline on the political fight over the budget. They were described by two Republicans who spoke on condition of anonymity.
Even before the official figures were released, Republicans in Congress sought to place the blame on federal spending, rather than the tax cuts they voted through at President Bush's urging. House majority leader tom delay and Rep. Jim Nussle both referred to a "spending-driven deficit."
Federal reserve chairman Alan Greenspan told a house committee that he still supports tax reductions to spur a torpid economy. But in remarks that could complicate future Republican drives for new tax cuts, he said the reductions should be paid for with spending cuts or tax increases to keep the budget situation from getting worse.
Bureau Report